Cotton Finishes Slightly Mixed

Crop quality concerns and talk of smaller production following recent rains in Texas and the Southeast offered support, while sluggish demand kept a lid on rallies.

U.S. cotton futures finished slightly mixed Monday as spot December settled just below unchanged after chopping back and forth within the range established in overnight dealings.

December closed off three ticks to 63.29 cents, in the upper quarter of its 130-point range from up 12 points at 63.44 cents to down 118 points at 62.14 cents. It matched FridayΆs high, fell to a five-session low, rallied to near unchanged, retreated to 62.52 and rallied again. March settled up 13 points to 63.13 cents.

Volume rose to an estimated 29,700 lots from 25,587 lots the previous session when spreads accounted for 11,948 lots or 47%, EFP 45 lots and EFS eight lots. Options volume totaled 1,798 calls and 2,275 puts.

Concerns about crop quality and talk of a smaller output following rains in Texas and the Southeast offered support, while slow demand as reflected in recent export sales checked rallies. Heavy rains fell Monday in parts of the Southeast. The heaviest amounts were forecast for southern Alabama, northern Georgia, western South Carolina and central North Carolina.

Defoliation and picking advanced rapidly in the week ended Thursday in Alabama, the Florida Panhandle and Georgia as producers took advantage of excellent conditions ahead of wet weather expected later, USDAΆs Agricultural Marketing Service reported in a cotton review.

Much of the Gulf Coast and South Georgia received around half an inch to 2 inches from steady rain and drizzle as a storm system lingered over the lower Southeast early in the reporting week. Fieldwork was briefly interrupted but sunny, clear conditions soon returned.

Fieldwork continued uninterrupted in North Carolina and Virginia under mostly sunny to partly cloudy conditions. Harvesting progressed at a rapid pace. Cotton in most areas in North Carolina suffered quality losses owing to excessive moisture in recent weeks.

In South Carolina, defoliation was underway in some fields but harvesting progressed at a slow pace as producers focused on salvaging other crops. Lint quality and yield losses were significant from excessive rains and flooding. Boll rot and seeds sprouting in bolls were reported in many fields.

Much-needed rain totaling 2 to 4 inches fell throughout the North Delta, while up to 12 inches flooded roads and low-lying fields in the South Delta. The North Delta needed more rain to restore depleted soil moisture. Most gins had enough backlogs on their yards to avoid interruptions. Field operations were nearly completed in Louisiana and were winding down in Mississippi.

Storms brought 2 to 3 inches of beneficial rain to South Texas and as much as 12 inches in the Rio Grande Valley. Operating gins neared completion. Reports indicated that fewer than 15,000 bales remained to be ginned in the Winter Garden.

Rains totaling 2 to 23 inches caused havoc with most operations in the Blackland Prairies. Power outages were widespread. Most gins restarted operations early in the period after utilities were restored. Module and sample hauling were delayed because of road damage and flooding. Some modules were sitting in several inches of water in fields.

Fields firmed from recent rainfall and harvesting resumed in the West Texas Plains. Sample receipts increased at classing offices.

Harvesting and ginning began around Safford, Ariz., but rain late in the period delayed picking. Modules accumulated in fields and gin yards in the San Joaquin Valley. Producers shredded stalks in compliance with the California Pink Bollworm program.

Futures open interest expanded 964 lots Friday to 199,736, with DecemberΆs down 1,276 lots to 105,216 and MarchΆs up 1,551 lots to 69,773. Cert stocks declined 581 bales to 46,140. There were 535 newly certified bales, 1,116 decertified bales and 3,339 bales awaiting review.